This course provides a comprehensive overview of the LNG value chain from upstream supply, liquefaction, shipping and regasification of LNG into downstream markets. The course is designed for new entrants to the LNG business or for those with some knowledge of the business wishing to broaden their understanding of the complete value chain. Those without prior knowledge of the LNG business may wish to familiarise themselves through the pre-study web based course.

After learning the fundamentals about LNG, the course covers the liquefaction process and LNG plants, shipping and regasification terminals with a focus on what happens along the value chain. This is followed by an understanding of the commercial issues affecting LNG projects, the players and the various drivers affecting the development of LNG projects. Key aspects such as project development, timescales and the range of Agreements and their integration will be covered. The course then moves on to the global LNG supply sources, markets and trading and the factors affecting the growth of the LNG business.

Includes Online Pre-study ModuleThis course is accompanied by a preparatory course available online. Delegates will receive a web voucher as part of their joining instructions upon confirmation of registration. By taking advantage of this "blended" learning approach, in-class time and learning are optimized.

What Will You Learn?

What is involved in developing an LNG project

The LNG value chain and the investments required

The processes involved in gas treatment and liquefaction

The importance of gas quality and upstream supply issues

Impact of economies of scale

The specialised nature of LNG ships

How shipping fits in the value chain

How a regasification terminal operates

Who the key players are and their drivers

How an LNG project is developed

Commercial issues impacting LNG projects

The main Agreements in an LNG project and how they are structured

The economic value of an LNG project

A global view of LNG supplies by region

How LNG competes in the energy market

Where the key LNG markets are and their characteristics

How LNG trading works

The differences between trading oil and LNG

How LNG is priced and regional differences

Manager’s Return on Investment

Upon completion of this course your employees will have:

Comprehension of the integrated LNG value chain and key characteristics of each element and the investments involved

An overview of the commercial agreements across the LNG chain and the implications for LNG project development and trading

An understanding of the main stakeholders, their drivers and their influence

A full appreciation of LNG pricing mechanisms in the regional markets

An understanding of the driving forces in the LNG business including prospects for future developments and the changing supplies and markets

• New entrants to the LNG industry• Managers in specific areas of the LNG chain requiring a broader knowledge of the commercial issues affecting the business• Professional personnel interacting with LNG supplies, markets and trading e.g. finance, legal marketing and those who need to understand the various sectors of the value chain and how they interact

The LNG Value Chain

What is LNG?

• Terminology

• LNG Properties

• Units and conversion factors

• Why LNG

• Structure of the LNG industry

Liquefaction

• Basic principles of refrigeration

• LNG liquefaction processes

• Importance of gas quality

• Comparison of process technologies

• Project costs

• New developments

LNG Plants

• Where are they?

• LNG milestones

• Growth and size of the industry

• Overview of global supply sources

LNG Shipping

• Cost comparison versus pipeline

• Special nature of LNG tankers

• Ship technologies

• Shipping costs

• Shipping capacity and delivery capabilities

• Shipping market

• Implications for LNG trading

LNG Regasification

• Processes involved

• Terminal operations

• Offshore regasification

• Constraints to developing terminals

• Regional overview of terminals

Commercial considerations in developing LNG projects How does LNG compete?

• What are the alternatives to LNG?

• Relative advantages and disadvantages of LNG

• Market value versus other fuels

Who are the players?

• Players in the value chain

o Governments

o Oil majors

o National Oil Companies

o Independents

o Shipping providers

o Buyers

o Terminal operators

o Finance providers

o Traders

o Local stakeholders

o Environmental Organisations

o Regulators

• Drivers, Influence and concerns for each player

Commercial Structure of an LNG Project

• Developing an LNG project

• Alternative Commercial Structures

• LNG Contract chain Contractual arrangements and timing

• Complexity of integrating requirements

• Overview of the Agreements

Main Agreements in an LNG project

• Contractual terminology

• Monetising the Upstream

o Upstream Agreements

o Joint Venture Agreements

• Monetising the midstream

o LNG Supply purchase Agreements

o Shipping contracts

• Import terminal arrangements

• LNG financing arrangements

LNG Project profitability

• Project life cycle

• Need for long term cash flow

• Project economics

• Risk analysis

• Value splits in an LNG Project

LNG Supplies, Markets and Trading LNG Supplies – where will it come from?